🥈 Silver (XAG/USD) Market Update – May 12, 2025

George Solotarov
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🥈 Silver (XAG/USD) Market Update – May 12, 2025

Silver Stays Elevated Amid Inflation Hedges and Geopolitical Jitters

Silver prices continued to trade near multi-week highs on Monday, with XAG/USD holding above $28.50 in early European trade. The precious metal has benefited from a combination of rising inflation concerns, steady industrial demand, and ongoing geopolitical uncertainty in Eastern Europe and the Middle East.

After breaking through key resistance near $28.00 last week, bulls are now eyeing a possible run toward the psychological $30.00 level, which hasn't been touched since 2021. However, short-term momentum may face headwinds as traders await this week’s U.S. CPI data and Fed commentary.

Fundamentals Driving Silver:

  • Inflation Hedge: Sticky U.S. inflation and delayed Fed cuts have renewed investor interest in hard assets like silver.

  • Industrial Demand: Demand for silver in solar panels and electronics remains firm, especially with China’s recent push to expand green energy output.

  • Geopolitical Tensions: Safe-haven flows continue to support silver alongside gold, especially with heightened risk premiums globally.

📊 Technical Outlook: XAG/USD

  • Current Price: $28.52

  • Support Levels: $28.00 • $27.40 • $26.85

  • Resistance Levels: $29.10 • $29.75 • $30.00

  • Trend Bias: Bullish above $28.00

Silver is holding above its 50-day and 200-day EMAs, with a bullish RSI near 62. A clean breakout above $29.10 could accelerate upside momentum toward $30.00, while a break below $28.00 would signal a short-term pullback.

🔔 Trading Signal Insight:

  • XAG/USD Buy Zone: $28.10–$28.30

  • Target 1: $29.10

  • Target 2: $30.00

  • Stop-Loss: Below $27.80

🗓️ This Week’s Watchlist for Silver Traders:

  • Wednesday: U.S. Core CPI – High impact

  • Thursday: PPI and Jobless Claims

  • Friday: Fed officials' speeches & Consumer Sentiment Index

Stay alert for volatility spikes around inflation data. We’ll issue real-time updates and trade alerts on our Signals Dashboard.

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